ISV Community Day Marketing 101 April 2005 ISV Community Day Marketing 101 April 2005 Kathryn Saducas Partner Program Manager Microsoft Australia Kathryn Saducas Partner Program Manager Microsoft Australia
ISV Community DayMarketing 101April 2005
ISV Community DayMarketing 101April 2005
Kathryn SaducasPartner Program Manager
Microsoft Australia
Kathryn SaducasPartner Program Manager
Microsoft Australia
Poll 1 – your businessPoll 1 – your business
Which of the following statements is most true:1. We are an established company that has 1 or more
products/solutions we have been selling to customers for a number of years
2. We are a small company who has recently developed a solution/product. We have sold one or 2 copies and now need to sell a lot more
3. We are a small developer who has nearly finished developing our product/solution and we now need to start thinking about selling it
4. We are still in developing a product but I will need to think about selling it at some point in the not too distant future.
Which of the following statements is most true:1. We are an established company that has 1 or more
products/solutions we have been selling to customers for a number of years
2. We are a small company who has recently developed a solution/product. We have sold one or 2 copies and now need to sell a lot more
3. We are a small developer who has nearly finished developing our product/solution and we now need to start thinking about selling it
4. We are still in developing a product but I will need to think about selling it at some point in the not too distant future.
Poll 2 – marketing experiencePoll 2 – marketing experience
Which of the following statements is most true:
1. We have an internal marketing department who handles most of our marketing and/or I work in that department
2. I am a confident marketer and am responsible for marketing/selling our product
3. I have some marketing experience and am responsible for marketing/selling our product
4. I have little or no marketing experience and I am responsible for marketing/selling our product
Which of the following statements is most true:
1. We have an internal marketing department who handles most of our marketing and/or I work in that department
2. I am a confident marketer and am responsible for marketing/selling our product
3. I have some marketing experience and am responsible for marketing/selling our product
4. I have little or no marketing experience and I am responsible for marketing/selling our product
Product
Customer
Channel
Strategic TriangleStrategic Triangle
Customer StrategyCustomer Strategy
Technology Adoption Life CycleTechnology Adoption Life Cycle
Innovator
“Techies”
Early Adopter
“Visionaries”
Early Majority
“Pragmatists”
Late Majority
“Conservatives”
Laggard
“Skeptics”
•Appreciate architecture
•Endorsers
•Not price sensitive
•Understand competition
•Accept bugs
•Importance of product itself
•See potential
•Risk takers
•Not price sensitive
•Buying a dream
•Start with pilots
•Request changes
•Fairly Price sensitive
•Not Pioneers
•Care about who they buy from
•Don’t want test site
•% improvements/ measurable
•Loyal once won
•Seek references
•Practical
33% 33%
•Traditionalists
•Don’t like change
•Fear high tech
•Very price sensitive
•Trailing edge technology
•De-bugged
•Mature products
•Product features not as important as service offering
“Crossing the Chasm”“Crossing the Chasm”
chas
m
Prove new technology enables a strategic leap forward
Technology must be made increasingly easier to adopt
Articulate compelling application that provides leap in benefits
Focus on customer references
Geoffrey A Moore - “Crossing the Chasm”
Market- Centric Benefits:
•Largest installed base
•Most 3rd party supporters
•Industry Standard
•Cost of ownership
•Quality of Support
•Microsoft tested and approved
Marketing MessagesMarketing Messages
chas
m
Product Centric Benefits:
•Fastest Product
•Easiest to use
•Architecture
•Product
•Platform
•Unique Functionality
Poll 3 – What is this chasm that Geoffrey Moore talks about? Poll 3 – What is this chasm that Geoffrey Moore talks about? • A big trap for new ISVs entering the
market – designed to keep new entrants out
• Disassociation between groups of customers eg. the needs of the early adopter vs the needs of the early majority
• Difference between customers decisions based around product and technology discussions versus decisions based on market share and reputation
• A big trap for new ISVs entering the market – designed to keep new entrants out
• Disassociation between groups of customers eg. the needs of the early adopter vs the needs of the early majority
• Difference between customers decisions based around product and technology discussions versus decisions based on market share and reputation
Channel StrategyChannel Strategy
“The Channel Advantage”by Lawrence G Friedman and Timothy R
Furey
“The Channel Advantage”by Lawrence G Friedman and Timothy R
Furey
ChannelsChannels
Indirect Channels
Direct
SalesPROS
CONSInternet
Tele-Sales
Sales Force
VAR
Retail
Disti’s
Direct Channels
ChannelsChannels
Indirect Channels
Direct
SalesPROS
CONSInternet
Tele-Sales
Sales Force
VAR
Retail
Disti’s
Direct Channels
ChannelsChannels
Indirect Channels
Direct
SalesPROS
CONSInternet
Tele-Sales
Sales Force
VAR
Retail
Disti’s
Direct Channels
Right Channels for Right ProductsRight Channels for Right Products
highlow
highRetail,
Distributor, Internet
FPPstandardised
Mass standardised
Unique Solutions
VARs, Direct Sales
Direct Sales, Partnering
channel touch
complexity
eg. PC Cillaneg. mobility apps, MS CRM
eg. ERP products + consultants
80% standardised 20% customised
20% standardised 80% customised
DIRECT SALESDIRECT SALES
1. Focus sales force on large account acquisition
2. Use other channels for ‘low value’ selling tasks
3. Provide extensive technology support to field reps
4. Sale force training5. Align performance with
large account focus
1. Focus sales force on large account acquisition
2. Use other channels for ‘low value’ selling tasks
3. Provide extensive technology support to field reps
4. Sale force training5. Align performance with
large account focus
• Only channel that can sell complex products and solutions into large, key accounts with a high degree of control over sales process
• Only channel that can sell complex products and solutions into large, key accounts with a high degree of control over sales process
Capability - Sales TrainingCapability - Sales Training
Sales Training• New Framework
consistent message to customers
• Sales Training Roadshowin March – 437 attendees
– Selling Microsoft Server Infrastructure to the CIO/IT Manager (3hr)
– Creating and Selling Partner Services Opportunities (3 hr)
– Solution Based Selling (1 day)
• New Training Centre on the portal – Partner Learning Centre
https://training.partner.microsoft.com/plc/
Sales Training• New Framework
consistent message to customers
• Sales Training Roadshowin March – 437 attendees
– Selling Microsoft Server Infrastructure to the CIO/IT Manager (3hr)
– Creating and Selling Partner Services Opportunities (3 hr)
– Solution Based Selling (1 day)
• New Training Centre on the portal – Partner Learning Centre
https://training.partner.microsoft.com/plc/
Solution Based Selling Courses: • Cost - $195 (Introductory offer until 30 Sept 05)• Presenter: Carpe Diem (management consultant)• For new and experienced BDMs• Learn/practise/revise key skills and processes
associated with successful solutions based selling
• Next Course Dates Solution Based Selling 1 -– Sydney 26 Sept / 18 Oct – Melbourne 12 Oct– Brisbane 26 Sept / 25 Oct– Adelaide 8 Nov– Perth 10 Nov
• Register now for either Solution Based Selling 1 &/or 2 now and receive the discounted price: http://www.microsoft.com/australia/partner/salesmarketing/solutionselling.aspx
Solution Based Selling Courses: • Cost - $195 (Introductory offer until 30 Sept 05)• Presenter: Carpe Diem (management consultant)• For new and experienced BDMs• Learn/practise/revise key skills and processes
associated with successful solutions based selling
• Next Course Dates Solution Based Selling 1 -– Sydney 26 Sept / 18 Oct – Melbourne 12 Oct– Brisbane 26 Sept / 25 Oct– Adelaide 8 Nov– Perth 10 Nov
• Register now for either Solution Based Selling 1 &/or 2 now and receive the discounted price: http://www.microsoft.com/australia/partner/salesmarketing/solutionselling.aspx
TELE-SALESTELE-SALES• Tele-channels handle
a diverse range of responsibilities ie. technical support, customer service, sales ordering, lead generation, outbound sales, marketing, customer loyalty. It’s a versatile and potent way to do business.
• Tele-channels handle a diverse range of responsibilities ie. technical support, customer service, sales ordering, lead generation, outbound sales, marketing, customer loyalty. It’s a versatile and potent way to do business.
• Benefits:– Revenue Growth– Reduced Selling Costs– Improved Customer
Satisfaction• Functions:
– Telesales– Telemarketing– Account Management– Support & Service
• Benefits:– Revenue Growth– Reduced Selling Costs– Improved Customer
Satisfaction• Functions:
– Telesales– Telemarketing– Account Management– Support & Service
PARTNERING – INDIRECT CHANNELSPARTNERING – INDIRECT CHANNELS• Intermediaries who
sell, support or sometimes even build a product for your customers, in return for a commission or other form of payment
• Intermediaries who sell, support or sometimes even build a product for your customers, in return for a commission or other form of payment
7 Best Practises –1. Define scope of channel2. Define partner’s role in the
sales process3. Develop robust channel
policies4. Build a strong base of partners5. Build a strong support
infrastructure • marketing, training, sales and
technical support6. Measure and Manage
Channel Performance7. Get Channel Feedback
7 Best Practises –1. Define scope of channel2. Define partner’s role in the
sales process3. Develop robust channel
policies4. Build a strong base of partners5. Build a strong support
infrastructure • marketing, training, sales and
technical support6. Measure and Manage
Channel Performance7. Get Channel Feedback
Hostingan alternative channel to marketHostingan alternative channel to market
Software As A Service DriversSoftware As A Service Drivers
0% 10% 20% 30% 40% 50% 60%0% 10% 20% 30% 40% 50% 60%
Affordable access to technology
Avoids capital investment
Simplify budgeting
Shorter implementation cycle
Lower cost of entry for applications
Improved total cost/performance
One-stop shopping/support
Focus more on primary business
Scalability to meet business growth
Avoidance of IT staff recruitment/retention
Source: IDC
Internal & External Use Licensing:ISV Application HostingInternal & External Use Licensing:ISV Application Hosting
Scenario 1: In-house Scenario 3: Shared HostingScenario 2: Dedicated Outsourcing
Customer A
ISV App.
Customer B
Customer A
ISV App.
Customer A
ISV App.
Internal Use: Customer can
license ISV App from ISV, MSFT products under
Open or ISV Royalty agreement
Internal Use: Even though ISV App is outsourced, it is
dedicated to Customer A, so Customer A can
use ISV Royalty or Open agreement
External Use: ISV has to sign SPLA, since using same set of licenses to provide App. for
multiple customers
Microsoft Licensing MapMicrosoft Licensing MapInternal UseInternal Use
Remote AccessRemote Access
External UseExternal Use
MBAMBA
EA/Select EnrollmentEA/Select Enrollment
OEM, FPPOEM, FPP
Customer and Customer’s Affiliates or appointed agents only
(Excludes unauthorized, non-employees)
Customer and Customer’s Affiliates or appointed agents only
(Excludes unauthorized, non-employees)
‘You may not rent, lease, lend or host products…’‘You may not rent, lease, lend or host products…’
Outsourcer Enrollment
Outsourcer Enrollment
‘External User’: Any person who is not: an employee, temporary
personnel, or your customer to whom you provide hosted services
‘External User’: Any person who is not: an employee, temporary
personnel, or your customer to whom you provide hosted services
External ConnectorExternal Connector SPLASPLA
Service Provider providing Software Services to its
customers
Service Provider providing Software Services to its
customers
Outsourced scenarios (including Outsourcing, Hosting, Web Services)
Outsourced scenarios (including Outsourcing, Hosting, Web Services)
On-siteOn-site
OpenOpen ISVISV
Authorized User
Authorized Usage
Scenario
Licensing mechanism
Third-party licensing programs (ISV Royalty Licensing program, Service Provider Licensing Agreement)
Service Provider Licensing Program (SPLA)Service Provider Licensing Program (SPLA)
Delivering software services to your customersin outsourcing, hosting, web services scenario’s
Features• Monthly usage• No commitments• Always latest versions• Fixed pricelist• Allows shared usage
Features• Monthly usage• No commitments• Always latest versions• Fixed pricelist• Allows shared usage
Business Benefits• Cost control (OPEX)• Low risk (pay-as-you-go)• Investment protection• Pricing stability• Innovation: THE model
for shared infrastructure (BPO)
Business Benefits• Cost control (OPEX)• Low risk (pay-as-you-go)• Investment protection• Pricing stability• Innovation: THE model
for shared infrastructure (BPO)
Why Customers are choosing Hosting Providers?Why Customers are choosing Hosting Providers?• Limited IT skills to manage services to employees and customers• Reduce TCO by sharing infrastructure with other businesses• Want to stay current with latest hardware and software• Need better integration between business applications
– Messaging linked to CRM, Web site to ERP• Need access from anywhere, anytime and potential from any device
– Mobile device integration, telecomputing• Outsource the license management burden• Move IT from asset based to expense based• Place security in the hands of professionals
• Limited IT skills to manage services to employees and customers• Reduce TCO by sharing infrastructure with other businesses• Want to stay current with latest hardware and software• Need better integration between business applications
– Messaging linked to CRM, Web site to ERP• Need access from anywhere, anytime and potential from any device
– Mobile device integration, telecomputing• Outsource the license management burden• Move IT from asset based to expense based• Place security in the hands of professionals
Useful LinksUseful Links
• Licensing information– http://www.microsoft.com/serviceproviders/licensing– [email protected]
• Register to – the Windows Web Hoster Program
• www.microsoft.com/wwhp– Access the Technical Community
• www.microsoft.com/serviceproviders/hostingcommunity
• Licensing information– http://www.microsoft.com/serviceproviders/licensing– [email protected]
• Register to – the Windows Web Hoster Program
• www.microsoft.com/wwhp– Access the Technical Community
• www.microsoft.com/serviceproviders/hostingcommunity
Poll 4 – what is the best channel strategy for ISVs?Poll 4 – what is the best channel strategy for ISVs?• It depends on your product and the way
your customers are used to ‘buying’ that product
• Direct Sales is the best channel for IT products as they can sell complex products to sophisticated customers
• Hosting is the best options as it is flexible and a cheap way for customers to trial our products
• It depends on your product and the way your customers are used to ‘buying’ that product
• Direct Sales is the best channel for IT products as they can sell complex products to sophisticated customers
• Hosting is the best options as it is flexible and a cheap way for customers to trial our products
Which channel to use?Which channel to use?
Lead generatio
n
Qualificat-ion
Pre-Sales Close Sales
Post Sale Support
Field Sales
Partners/VARs
Tele-Sales
Internet
task
channel
Channel MarketingChannel Marketing
The 4 P’sThe 4 P’s
ProductProduct PricePrice PlacePlace PromotionPromotion
•Promote your value proposition•Leads funnel•Lead Nurturing•Marketing Execution•Campaigns•Offers•PR•Branding•Advertising
•Distribution Channel•Partnering•Warehousing•Target Markets•International markets
•End user cost•Channel Costs•Competitive pricing•Break-even analysis•Commissions•Value added pricing•Margins•Rebates•Discounts
•Product differentiation•Market segment •Vertical focus•Horizontal focus•Competitor analysis•The whole ‘product’•Technology advantage
Elements of the Marketing MixElements of the Marketing MixTypes of Marketing Cost Reach Dialogu
eEasy to Measure
Effective-ness
Direct Mail – direct response
Med Targeted 2-way
1-way1-way2-way2-way1-way
2-way2-way
Trade Show Med-High Targeted 2-way Med
Trade Magazines Med Targeted 1-way Med
2-way
High
PR Low Broad MedAdvertising High Broad LowSales Promotion Med Low MedPersonal Selling High Low HighOnline Marketing & Newsletters
Low Targeted Med-High
Telesales High Targeted HighSeminars/Events Low Targeted High
Referral Program Low Targeted High
Marketing Mix and Leads FunnelMarketing Mix and Leads Funnel
Adv
ertis
ing
PR
Sale
s Pr
omot
ion
Pers
onal
Sel
ling Ev
ents
Dir
ect M
ail
WO
M/R
efer
rals
Onl
ine
Mar
ketin
g
3
Prospects
500
25
5
nSynergy InternationalnSynergy InternationalACTIVITY:• Developed a “Demo
CD”• Sent to 2000
prospects – Corporate Legal
Council and Law Firms in Australia & UK
• Followed up with telesales
ACTIVITY:• Developed a “Demo
CD”• Sent to 2000
prospects – Corporate Legal
Council and Law Firms in Australia & UK
• Followed up with telesales
OUTCOME:• 120 prospects• Closed 40 deals
(over last 12 months)
• Value = $3 million• Likely deals over
next 24 months = $10 million
OUTCOME:• 120 prospects• Closed 40 deals
(over last 12 months)
• Value = $3 million• Likely deals over
next 24 months = $10 million
Gary Ray – Global Distributor
Poll 5 – What is the key to successful marketing?Poll 5 – What is the key to successful marketing?• Broad based advertising like TV is the best
way to build brand awareness• Marketing is very hard to do so make sure
you hire professionals to do the work for you
• Try to focus on marketing that generates 2-way dialogue with your customers
• Know your customers and understand your value proposition
• Broad based advertising like TV is the best way to build brand awareness
• Marketing is very hard to do so make sure you hire professionals to do the work for you
• Try to focus on marketing that generates 2-way dialogue with your customers
• Know your customers and understand your value proposition
Ripening the Right BananasRipening the Right Bananas
Lead NurturingLead Nurturing
Ripening the Right BananasRipening the Right Bananas
• Effective lead generation is biggest issue for B2B marketers – but 80% of marketing expenditure is wasted
• AMR Research reveal that small businesses do not follow up on up to 70 percent of all leads, representing as much as 14–22% of annual revenue.
• Effective lead generation is biggest issue for B2B marketers – but 80% of marketing expenditure is wasted
• AMR Research reveal that small businesses do not follow up on up to 70 percent of all leads, representing as much as 14–22% of annual revenue.
Process
ProcessProcess
“Lead nurturing is all about having consistent and meaningful dialogue with viable prospects regardless of their timing to buy. It's about building trusted relationships with the right people. In the end, it's the act of maintaining mind share and building solid relationships with economic buyers. It's not a salesperson calling up every few months to find out if a prospect is ‘ready to buy yet’."
MarketingProfs.com 14 Dec 2004
Lead Nurturing Builds TrustLead Nurturing Builds Trust
• 1000’s of leads don’t always more sales• Lead nurturing program includes regular
communication– Letters, emails, newsletters, webinars, live
meetings, advertising, PR, workshops, blogsetc.
• Benefits: Close ratios higher and sales cycles shorten
• Marketing efforts are better spent on generating and following leads
• 1000’s of leads don’t always more sales• Lead nurturing program includes regular
communication– Letters, emails, newsletters, webinars, live
meetings, advertising, PR, workshops, blogsetc.
• Benefits: Close ratios higher and sales cycles shorten
• Marketing efforts are better spent on generating and following leads
QuestionsQuestions
Thank YouThank You
• Partner Website– www.microsoft.com.au/partner/salesandmarketing
• Email: [email protected]• Resources –
– “Crossing the chasm” by Geoffrey Moore
– “The Channel Advantage” by Lawrence G Friedman and Timothy R Furey
– www.marketingprofs.com– Register now for Solution Based Selling courses:
http://www.microsoft.com/australia/partner/salesmarketing/solutionselling.aspx
• Partner Website– www.microsoft.com.au/partner/salesandmarketing
• Email: [email protected]• Resources –
– “Crossing the chasm” by Geoffrey Moore
– “The Channel Advantage” by Lawrence G Friedman and Timothy R Furey
– www.marketingprofs.com– Register now for Solution Based Selling courses:
http://www.microsoft.com/australia/partner/salesmarketing/solutionselling.aspx